Cessation Accounts for Sole Trader

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carrs

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I have always done the accounts and tax returns for my husband and everything was always straightforward.

Last April, he registered with Revenue as having ceased trading.

I am now thinking about his final tax return for 2013 and wonder can anyone advise on the following:

1. His accounting year was 01 Jan to 31 Dec so am I right in thinking that there are therefore no adjustments to be made from the 2012 tax return as his accounting year follows the standard tax year.
2. Is his profit for the year based on a quarter of his profit from jan to april as he was only trading for a quarter of the year.
3. I know you put in a balancing charge for the fixed assets on the tax return - does this balance get added to the sales of the business in the profit and loss accounts?
4. Do I then account for the value of the assets in drawings on the accounts?


Thanks for any help you may offer.
 
I would strongly recommend that you sit with an accountant

but if you are going ahead solo - There are guides to cessation returns on revenues website

Points 3 & 4 - nothing to do with sales - maybe someone else here can give a consise guide on how to account for it in the accounts and tax return - I'd struggle to give a brief instruction :)
 
If this is a small business there should be no need to involve an accountant in preparing and presenting final accounts. Who completed the tax returns up until now? Submitting a final return for a small sole trader is very simple. You have some questions, but the best approach is to give the Revenue help line a ring. they are extremely helpful and will quickly answer any problems and advise you exactly how to submit your final return.
 
OP completed the returns up til now.... When did he commence trading? only asking because there are other implications if less than 3 years ago
 
44brendan said:
the best approach is to give the Revenue help line a ring. they are extremely helpful and will quickly answer any problems and advise you exactly how to submit your final return.
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But they, as a matter of policy, won't & don't stand over any "advice" given by their own staff, and therefore the onus of ensuring compliance with the tax laws remains at all times with the taxpayer.
 
The answers to 3 & 4 are no in both instances. I take Wind-ups point into consideration. You seem to have no real experience in completing these returns correctly. A small accountant could save you time and money. Talk to a couple and agree a fee in advance!
 
Trading commenced in 2001.
I have completed the returns up to now. I thought about getting an accountant but thought they might not be too interested as it's final year and they have had no input up until now.
 
accountants like money too .... you seem to have a good handle on the numbers and just want some guidance on comleting the return - I think you'll have no trouble getting a small accountant to help. If you say where you are based someone might PM you a recommendation
 
carrs said:
1. His accounting year was 01 Jan to 31 Dec so am I right in thinking that there are therefore no adjustments to be made from the 2012 tax return as his accounting year follows the standard tax year. Correct there is a prior year review to actual but as you using December it won't have any impact.

2. Is his profit for the year based on a quarter of his profit from jan to april as he was only trading for a quarter of the year. The profit for 2013 is the profit for the period Jan - Apr 13. Then add any other income he had for the rest of the year.

3. I know you put in a balancing charge for the fixed assets on the tax return - does this balance get added to the sales of the business in the profit and loss accounts? You need to compare the tax written down value with the market value. Then compute the balancing allowance or balancing charge. This is used in the tax computation. Have you dealt with any VAT issues.


4. Do I then account for the value of the assets in drawings on the accounts? Not really.


Thanks for any help you may offer.
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Joe.
 
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